Trade-Ideas LLC identified Valley National Bancorp ( VLY) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Valley National Bancorp as such a stock due to the following factors:

  • VLY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.4 million.
  • VLY has traded 170,554 shares today.
  • VLY is trading at 2.74 times the normal volume for the stock at this time of day.
  • VLY is trading at a new low 3.03% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on VLY:

Valley National Bancorp operates as the holding company for the Valley National Bank that provides commercial, retail, trust, and investment services. The company operates through Commercial Lending, Consumer Lending, and Investment Management segments. The stock currently has a dividend yield of 4.6%. VLY has a PE ratio of 22. Currently there is 1 analyst that rates Valley National Bancorp a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Valley National Bancorp has been 1.9 million shares per day over the past 30 days. Valley has a market cap of $2.4 billion and is part of the financial sector and banking industry. The stock has a beta of 0.87 and a short float of 7.3% with 12.29 days to cover. Shares are down 2.8% year-to-date as of the close of trading on Thursday.

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TheStreet Quant Ratings rates Valley National Bancorp as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, expanding profit margins and growth in earnings per share. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 1.1%. Since the same quarter one year prior, revenues slightly increased by 9.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Banks industry. The net income increased by 19.3% when compared to the same quarter one year prior, going from $30.34 million to $36.19 million.
  • Net operating cash flow has slightly increased to $54.73 million or 1.60% when compared to the same quarter last year. In addition, VALLEY NATIONAL BANCORP has also vastly surpassed the industry average cash flow growth rate of -122.12%.
  • The gross profit margin for VALLEY NATIONAL BANCORP is currently very high, coming in at 81.53%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 17.47% trails the industry average.
  • VALLEY NATIONAL BANCORP has improved earnings per share by 7.7% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, VALLEY NATIONAL BANCORP reported lower earnings of $0.43 versus $0.57 in the prior year. This year, the market expects an improvement in earnings ($0.65 versus $0.43).

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